U.K. to Give Regulators Powers to Split Up Banks

By

Ainsley Thomson And

Max Colchester

Feb. 3, 2013 7:01 p.m. ET

LONDON—U.K. Treasury chief George Osborne on Monday will announce new powers for regulators to split up banks that flout rules designed to ring-fence retail banking from riskier investment-banking activity.

In a wide-ranging speech on banking in Bournemouth, England, Mr. Osborne is expected to say the new powers are needed so that taxpayers will never again be on the hook when banks fail, as they were during the financial crisis.